TIDMHSBA
RNS Number : 1326I
HSBC Holdings PLC
25 August 2016
The following regulated information, disseminated pursuant to
DTR 6.3.5, comprises the scrip dividend circular for the second
interim dividend for 2016 which was sent to shareholders of HSBC
Holdings plc on 25 August 2016. A copy of the scrip dividend
circular is available at www.hsbc.com/dividends
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE
ATTENTION. If you are in any doubt about this document or as to the
action you should take, you should consult a stockbroker,
solicitor, accountant or other appropriate independent professional
adviser.
If you sold or transferred all or some of your ordinary shares
on or before 10 August 2016, but those shares are included in the
number shown in box 1 on your form of election or entitlement
advice for the second interim dividend for 2016, you should,
without delay, consult the stockbroker or other agent through whom
the sale or transfer was effected for advice on the action you
should take.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange
of Hong Kong Limited take no responsibility for the contents of
this document, make no representation as to its accuracy or
completeness and expressly disclaim any liability whatsoever for
any loss howsoever arising from or in reliance upon the whole or
any part of the contents of this document. The ordinary shares of
HSBC Holdings plc trade under stock code 5 on The Stock Exchange of
Hong Kong Limited.
25 August 2016
Dear Shareholder
2016 SECOND INTERIM DIVID
On 3 August 2016 your Directors declared a second interim
dividend for 2016 of US$0.10 per ordinary share. This dividend is
payable on 28 September 2016 to shareholders who are recorded on
the Principal register, Hong Kong or Bermuda Overseas Branch
registers on 12 August 2016 ('record date'). You have a choice of
receiving this dividend in cash in three currencies (US dollars,
Hong Kong dollars or sterling). You may also elect to receive it as
a scrip dividend in the form of new shares.
SCRIP DIVID
You can elect to receive new shares at a market value of
US$7.1015 (GBP5.4468) instead of receiving the dividend in cash. If
you elect to receive new shares, you will increase your
shareholding without incurring dealing costs or stamp duty. The
Company will also benefit by retaining cash which would otherwise
be payable by way of the cash dividend. At the 2016 Annual General
Meeting shareholders gave Directors authority to offer a scrip
dividend scheme for a further three-year period, which will apply
to this second interim dividend for 2016. The appendix to this
letter sets out further details of the scrip dividend.
We encourage you to sign up to receive all communications from
the Company by email. Please go to www.hsbc.com/ecomms to register
your email address so that we can send you email notifications when
shareholder documents are available on our website and of your
dividend entitlements.
Yours sincerely
Ben J S Mathews
Group Company Secretary
HSBC Holdings plc
Registered Office and Group Head Office:
8 Canada Square, London E14 5HQ, United Kingdom Web:
www.hsbc.com
Incorporated in England with limited liability. Registered in
England: number 617987
Appendix
How is the scrip dividend calculated?
The scrip dividend is calculated using the average middle market
closing price of HSBC Holdings plc ordinary shares quoted on the
London Stock Exchange for the five business days beginning with the
ex-dividend date of 11 August 2016. The market price is converted
to US dollars (the "Market Value") using the exchange rates quoted
by HSBC Bank plc in London at or about 11.00 am on 17 August 2016.
For this dividend the scrip price is US$7.1015 (GBP5.4468).
The formula used for calculating your entitlement to new shares
is as follows:
Number of shares held at the record date x cash dividend per
share + any residual dividend entitlement brought forward = maximum
dividend available for share election
Maximum dividend available (=) maximum number of new shares
Market Value (rounded down to the nearest whole number)
An online calculator to assist you in calculating your dividend
entitlement is available at www.hsbc.com/dividends.
For example, if you own 1,000 ordinary shares and the cash
dividend is US$0.10 per ordinary share, the maximum dividend
available would be US$100. The maximum number of new shares you
would receive if the Market Value was US$10 is therefore 10 new
shares.
You may elect to receive new shares in respect of all or part of
your holding of ordinary shares. No fraction of a share will be
issued.
If you elect to receive the maximum number of new shares in lieu
of your dividend, a residual dividend entitlement may arise,
representing the difference between the total Market Value of the
new shares and the maximum dividend available in respect of your
shareholding. This residual dividend entitlement will be carried
forward in US dollars (without interest) to the next dividend.
Therefore, we will pay you any residual dividend entitlement if you
dispose of your entire holding; or receive the dividend in cash; or
revoke your standing instruction to receive new shares; or if you
ask us to send it to you.
If you have less than 72 ordinary shares you will not receive
any new shares for this dividend.
The new shares will be issued subject to the Articles of
Association of the Company and will rank equally with the existing
issued ordinary shares in all respects.
What is the currency conversion rate for cash dividends?
The dividend is declared in US dollars. It will then be
converted into Hong Kong dollars and sterling using the forward
exchange rate quoted by HSBC Bank plc in London at or about 11.00
am on 19 September 2016. For example, using the exchange rates on
17 August 2016, the US dollar cash dividend would be HK$0.7755 or
GBP0.0767. The exchange rate to be applied for this dividend will
be announced to the London, Hong Kong, New York, Paris and Bermuda
stock exchanges on or around 19 September 2016.
If you do not choose the currency in which to receive your cash
dividend, you will be paid as follows:
1. Principal register in the United Kingdom - sterling (except
for those who are resident in the United States in which case it
will be US dollars)
2. Hong Kong Overseas Branch register - Hong Kong dollars
3. Bermuda Overseas Branch register - US dollars.
What action is required?
Your form of election or entitlement advice (the "Form") is
included with this letter. If you have registered your email
address, you should have been sent an electronic version. If you do
not wish to change how you receive your dividend, you should take
no action, your dividend will be paid as indicated in the Form.
If you wish to change the way you receive your dividend, you
must either do so by 14 September 2016 using the online system
"Investor Centre"*, returning the Form, or by writing to our
Registrar, Computershare at the relevant address given at the end
of this letter.
We can pay your dividend direct to your bank account in the
United Kingdom, United States or Hong Kong if your bank account is
denominated in the local currency. Please provide your bank account
details to the Registrar by completing the dividend payment
instruction section of the Form.
No acknowledgement of receipt of a form of election will be
issued.
Other information
If all shareholders elected to receive new shares for the second
interim dividend for 2016, approximately 280,565,127 new shares
would be issued, representing an increase of 1.41 per cent in the
issued ordinary share capital of the Company as at 16 August
2016.
The total cost of the second interim dividend for 2016 if no new
shares were issued would be approximately US$1,992 million. The
applicable tax credit is the sterling equivalent of approximately
US$221 million.
Transfers
If you recently acquired ordinary shares registered on the
Principal register in the United Kingdom or the Overseas Branch
registers in Hong Kong or Bermuda, your share transfer must have
been lodged with the appropriate Registrar before 4.00 pm on 12
August 2016 in order to receive the dividend.
*If you have not yet signed up to use Investor Centre you may do
so at any time at www.investorcentre.co.uk or
www.investorcentre.com/hk or www.investorcentre.com/bm. You can
view your shareholding at any time on Investor Centre.
Issue of share certificates and listing of new shares
Applications will be made to the UK Listing Authority and to the
London Stock Exchange for the new shares to be admitted to the
Official List and to trading respectively, to the Stock Exchange of
Hong Kong for listing of, and permission to deal in, the new
shares, and to the New York, Paris and Bermuda stock exchanges for
listing of the new shares.
Existing ordinary shares on the Principal register may be held
either in certificated form, or in uncertificated form through
CREST. If you hold ordinary shares in both certificated and
uncertificated form, each holding will be treated separately for
the purpose of calculating entitlements to new shares.
Definitive share certificates for the new shares issued in
respect of holdings in certificated form are expected to be mailed
to shareholders entitled thereto at their risk on or about 28
September 2016, at the same time as warrants in respect of the cash
dividend are mailed. New shares issued in respect of holdings of
ordinary shares which are in uncertificated form will also be
issued in uncertificated form. The Company will arrange for the
relevant shareholders' stock accounts in CREST to be credited with
the appropriate numbers of new shares on 28 September 2016.
Dealings in the new shares in London, Hong Kong, Paris and
Bermuda, and in the American Depositary Shares in New York are
expected to begin on 28 September 2016.
The new shares will rank pari passu with the existing ordinary
shares of the Company.
Your responsibilities
Whether or not it is to your advantage to elect to receive new
shares in lieu of a cash dividend or to elect to receive payment in
US dollars, sterling or Hong Kong dollars is a matter for
individual decision by each shareholder. HSBC cannot accept any
responsibility for your decision.
Overseas shareholders
No person receiving a copy of this document or the form of
election in any jurisdiction outside the United Kingdom or Hong
Kong may treat the same as offering a right to elect to receive new
shares unless such offer could lawfully be made to such person
without the Company being required to comply with any governmental
or regulatory procedures or any similar formalities. It is the
responsibility of any person outside the United Kingdom and Hong
Kong who wishes to receive new shares under the scheme to comply
with the laws of the relevant jurisdiction(s), including the
obtaining of any governmental or other consents and compliance with
all other formalities. It is also the responsibility of any person
who receives new shares in lieu of a cash dividend to comply with
any restrictions on the resale of the shares which may apply
outside the United Kingdom and Hong Kong. For example, shareholders
in Ontario who have new shares allotted to them under the Scheme
must ensure that the first trade of their new shares is executed on
a stock exchange outside Canada.
Taxation
The effect on the tax position of any shareholder receiving a
cash dividend or electing to receive new shares in lieu of a cash
dividend will depend upon the shareholder's own individual
circumstances. If you are in any doubt as to what to do, you should
consult your professional advisers. No tax is currently withheld
from dividends paid by the Company. In April 2016 the UK dividend
tax credit was abolished and replaced by a new GBP5,000 tax-free
dividend allowance. Tax rates on UK dividend income were also
increased.
To assist shareholders who receive a scrip dividend, we will
send a Dividend Confirmation which may be needed for tax
returns.
Further information on taxation is provided on our website at
www.hsbc.com/dividends.
Timetable of events
American Depositary Shares 10 August
quoted ex-dividend in New York 2016
Ordinary shares quoted ex-dividend
in London, Hong Kong, Paris
11 August
2016
and Bermuda
Record date for the second
interim dividend for 2016 for
holders
on the Principal register, 12 August
Hong Kong or Bermuda Overseas 2016
Branch registers
FINAL DATE FOR RECEIPT BY REGISTRAR
OF FORMS OF
ELECTION, REVOCATIONS OF STANDING 14 September
INSTRUCTIONS 2016
FOR SCRIP DIVIDENDS AND ELECTRONIC
INSTRUCTIONS
Exchange rate determined for
payment of dividends in sterling
19 September
2016
and Hong Kong dollars
Payment date - dividend warrants
mailed; new share certificates
or Bermuda Overseas Branch
register Transaction Advices
and
28 September
2016
Dividend Confirmations mailed;
and shares credited to stock
accounts in CREST
Expected first day of dealings
in new shares in London,
Hong Kong, Paris and Bermuda; 28 September
and in American Depositary 2016
Shares in New York
Communications
Shareholders may at any time choose to receive corporate
communications in printed form or to receive notifications of their
availability on HSBC's website. To receive, by email, future
notifications of the availability of a corporate communication on
HSBC's website, or revoke or amend an instruction to receive such
notifications, go to www.hsbc.com/ecomms. If you provide an email
address to receive electronic communications from HSBC, we will
also send notifications of your dividend entitlements by email. If
you received a notification of the availability of this document on
HSBC's website and would like to receive a printed copy of it, or
if you would like to receive future corporate communications in
printed form, please write or send an email (quoting your
shareholder reference number) to the appropriate Registrar at the
address given below. Printed copies will be provided without
charge.
Further copies of this letter, replacement forms of election and
a Chinese translation of this and future documents may be obtained
from the Registrar.
Principal register Hong Kong Overseas Branch register
Computershare Investor Services PLC Computershare Hong Kong
Investor Services Limited
The Pavilions Rooms 1712-1716, 17th Floor
Bridgwater Road Hopewell Centre
Bristol 183 Queen's Road East
BS99 6ZZ Hong Kong SAR
United Kingdom Telephone: +852 2862 8555
Telephone: +44 (0) 370 702 0137 Email: hsbc.ecom@computershare.com.hk
Email via website: Investor Centre:
www.investorcentre.co.uk/contactus www.investorcentre.com/hk
Investor Centre:
www.investorcentre.co.uk
Bermuda Overseas Branch register US Shareholder helpline
Investor Relations Team Telephone: +1 866 299 4242
HSBC Bank Bermuda Limited
6 Front Street
Hamilton HM 11
Bermuda
Telephone: +1 441 299 6737
Email: hbbm.shareholder.services@hsbc.bm
Investor Centre: www.investorcentre.com/bm
Persons whose shares are held on their behalf by another person
may have been nominated to receive communications from HSBC
pursuant to section 146 of the UK Companies Act 2006 ("nominated
persons"). The main point of contact for nominated persons remains
the registered shareholder (for example your stockbroker,
investment manager, custodian or other person who manages the
investment on your behalf). Any changes or queries relating to
nominated persons' personal details and holding (including any
administration thereof) must continue to be directed to the
registered shareholder and not HSBC's Registrar. The only exception
is where HSBC, in exercising one of its powers under the UK
Companies Act 2006, writes to nominated persons directly for a
response.
Within this document the Hong Kong Special Administrative Region
of the People's Republic of China has been referred to as "Hong
Kong".
The Directors of HSBC Holdings plc are Douglas Flint, Stuart
Gulliver, Phillip Ameen , Kathleen Casey , Laura Cha , Henri de
Castries , Lord Evans of Weardale , Joachim Faber , Sam Laidlaw ,
Irene Lee , John Lipsky , Rachel Lomax , Iain Mackay, Heidi Miller
, Marc Moses, David Nish , Jonathan Symonds , Pauline van der Meer
Mohr and Paul Walsh .
Independent non-executive Director
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Made in Italy, the paper comprises 50% virgin fibre, 25%
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This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUVRWRNVAWURR
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August 25, 2016 05:00 ET (09:00 GMT)
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